Land in Kenya is divided into three categories: There is public land, which is owned by the government and the people of Kenya. There is also private land and community land. A government-owned company has its own memorandum of association and articles of association as a public entity.
If this government company has some land, it can lease that land out to an individual based on the lease contract. A state corporation normally has powers to sue, to be sued or to enter into contracts and to enforce those contracts.
A company owned by the government or a state corporation can lease its own land to anyone, within terms and conditions specified in the lease agreement. However, if a government wants to lease some property, it forms a company that the government has the majority shareholding through which it will transact to private individuals.
Such transaction must have a lease which must specify the period for the lease. If that lease lapses, the land goes back to the company. Most of these companies that are owned by the public have powers to enter into contracts.
It must be understood that when such public firms are leasing out, for example, their land, it is via some kind of tender.
This means that such procurement must adhere to the law governing public procurement. A government company must ensure that its procedures must adhere to the procurement laws.
Leasing land is like disposing or alienating or conveyancing to an individual or a different party other than the registered owner. In this case, Kenya Railway is just like any public entity and therefore must stick to the procurement law.
State corporations with powers to enter into a contract, to sue and to be sued must adhere to the law outlining the procurement procedure. These include advertising and inviting bids, evaluation to the award of the tender. No government entity is allowed to arm-twist the law when it comes to dealing with public property.
Land owned by the barracks or the military cannot be disposed of for private use at all. All other government entities should stick to the law when leasing land for private use
